Midland Lumber & Supply, Inc. v. J.P. Builders

ARNOLD, P.J.Cv.

This is the return day of a motion brought by the defendant, United Jersey Bank (“Bank”) to dismiss plaintiffs complaint for failure to state a claim upon which relief can be granted, or in the alternative, for summary judgment. The motion raises the issue of whether a subordinate lien holder named as a loss payee in a fire insurance policy is entitled to the insurance proceeds in preference to the holder of a superior lien on the encumbered real estate.

Briefly the relevant and undisputed facts are as follows. Jon and Rosalie Ferrari owned real property located at 825 Lamington…